Going on a travel trip with the Blockchain : step 2

Step 2: Retention

The loyalty program: towards easier management for companies and a bigger reward program for the consumer.

Mr. X’s trip

Mr. X, goes on vacation, when he comes on the spot, he validates his reservation, each one gets his deposit, but le “Guide du Routard” has decided to give BTU to fidelize his client. Mr. X is left with 10 BTU materialized in “Routard” loyalty point, so he still has a credit to use with “Le Guide du Routard” and his partners. Mr. X spots a scuba diving excursion in an article of “Le guide du Routard”, he reserves his activity, the price is decreased by 10 BTU.

Mr. X is happy with this decreased price of his reservation by using his loyalty points. For his own part, “Le Guide du Routard” can follow the consumption of points and can upgrade the amount of points to the accounting liabilities of his company. Mr. X has nothing to do, he reserves as in step 1 and on the other side, a program automates the process and add it to the blockchain.

Nowadays

Fidelity programs are currently less used by users and they generate very high costs for businesses. According to a Nielsen study, 58% of consumers who join a loyalty program do not feel privileged by a brand, worse 50% of people who get the loyalty card (fidelity card) of a store do their shopping in another brand.

In addition, many points are lost or booking errors are recorded and are not interoperable.

Using the blockchain

The blockchain will simplify the management of loyalty programs for both businesses and consumers. It allows them to monetize loyalty points in virtual currency, usable throughout the partner network, which permit to decentralize the loyalty program that previously belonged to a company and now belongs to a decentralized network. In this way, loyalty points earned at “Le Guide du Routard” could very well be spent at Air France.

Then, for the security part, we can rely on the smart contract BTU Protocol to avoids errors and allows to be paid quickly at the right amount, in order to automate the payment process and thanks to that, structural costs are lower.